March 12, 2015

Bill to regulate Uber, Lyft passes House

A bill to allow the Public Regulation Commission to regulate ride-sharing services, such as Uber and Lyft, passed the House on Thursday after an hour-long debate.

“What this bill does is it will set a framework that allows the PRC to promulgate rules,” Rep. Monica Youngblood, R-Albuquerque, said. The bill referred to the companies as transportation network companies.

“We look at the benefits of Uber and Lyft and other transportation network companies and they reduce DWIs across the state, create more jobs for independent contractors, provide more options for how people can get around our states,” Youngblood said.

The bill passed on a 56-8 vote.

Democrats generally said that they were in favor of Uber and Lyft but some believed that the bill gave these companies in an unfair advantage over traditional taxi companies that are regulated by the state Motor Carrier Act.

The ride-sharing services involve drivers who are hailed through a phone or web application instead of traditionally hailing a taxi cab on the street or over the phone.

Rep. Moe Maestas, D-Albuquerque, said these transportation network companies provide the same service as taxi companies.

“It’s the same industry. It’s the same service,” Maestas said. “They’re providing transportation service in the car.”

Later in the debate, Minority Brian Egolf, D-Santa Fe, pledged to work with Youngblood over the interim to modernize the Motor Carrier Act to provide a more level playing field.

McQueen also objected to a portion of the bill that said, “A transportation network company driver’s vehicle is not a commercial or for-hire vehicle and is not subject to registration as a commercial or for-hire motor vehicle.”

“We have something that is clearly one thing, which is a commercial enterprise, we’re drafting a bill that says it is not,” McQueen said.

At times, the debate resembled a commercial for Uber, which was used interchangeably for transportation network companies by some legislators.

“I just thought I had thought of it,” Rep. Cathrynn Brown, R-Carlsbad said. She compared it to velcro, intermittent wipers or wheels on suitcases.

Rep. Nora Espinoza, R-Roswell, said of Uber, “This company gives a great opportunity” to those going to college and mothers.

“This is truly an opportunity not only for our state, for individuals, for moms and for students,” Espinoza said.

Uber and Lyft have been in battles with regulators throughout the United States, including in New Mexico.

Some questioned the insurance for drivers and if it was large enough to cover the drivers, who are independent contractors.

Youngblood said some taxi companies have independent contractors as drivers and that the company insurance that kicks in when the drivers have the phone application open is significant enough to cover any accident.

The legislation went through significant changes in the committee process, getting committee substitutes in two different committees.

The legislation now heads to the Senate.

Correction:

This piece originally said Rep. Matthew McQueen was from Santa Fe. He is from Galisteo. We regret the error.

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State Rep. Bobby Gonzales shook his head from side to side after listening to all the suggestions about how to meet a judge's order to provide more resources to New Mexico children who, in the court's view, are not receiving a good public education.

Matthew Reichbach is the editor of the NM Political Report. The former founder and editor of the NM Telegram, Matthew was also a co-founder of New Mexico FBIHOP with his brother and one of the original hires at the groundbreaking website the New Mexico Independent. Matthew has covered events such as the Democratic National Convention and Netroots Nation and formerly published, “The Morning Word,” a daily political news summary for NM Telegram and the Santa Fe Reporter.
Matthew has appeared as a panelist for the Society of Professional Journalists’ New Mexico Chapter’s panel on covering New Mexico politics and the legislature.
A native New Mexican from Rio Rancho, Matthew’s family has been in New Mexico since the 1600s.